2. Present value, future value and compounding A person deposits $10,000 in the bank and leaves it there for three years. The money earns 5% interest per year. A. What is the value at the end of the three years, the future value, assuming annual compounding of interest and reinvestment of the interest?

B. What is the future value assuming semi-annual (twice a year) compounding?

A person deposits $10,000 in the bank and leaves it there for three years. The money earns 5% interest the first year, 7% interest the second year, and 7% interest the third year.

C. What is the value at the end of the three years, the future value, assuming annual compounding of interest and reinvestment of the interest?

D. I deposit $10,000 in the bank and in three years it has the value of $12,021.45. Assume annual compounding of interest. What is the annual interest rate consistent with these values?

E. I will receive $12,021.45 in three years. Assume annual compounding at a rate of 6.33% per year. What is the present value?